A family of three from Rheenendal was killed earlier in the fire that's also forced the closure of a section of the N2 between Knysna and Plettenberg Bay.

The highway close to George has also been shut down because of the blaze which broke out last night.

Several homes have been gutted but authorities could not confirm the exact number.

Knysna municipal spokesperson Fran Kirsten says the fire is coming from both sides of the town.

“We noticed that the flames are actually in town, they come over the back ridge. We are evacuating people Knysna right into the CBD. We are asking them to move from their homes and the fire before they suffer smoke inhalation.”

Kirsten adds different crews are on the scene.

“We have the health department, the SAPS, and the vehicles at the joint operations centre are just following what is happening and making sure that people get to safety.”